On the afternoon of May 25, 2006, Foreign Ministry Spokesman Liu Jianchao held a regular press conference.

Liu: Good afternoon, ladies and gentlemen! I would like to begin with two announcements:

At the invitation of Foreign Minister Li Zhaoxing, Foreign Minister of the Republic of Ecuador Francisco CARRION Mena will pay an official visit to China from May 31st to June 3rd .

Secondly, East Timor side recently informed the Chinese side that President Xanana would put off his visit to China due to internal situations in East Timor. The Chinese side has expressed understanding of it. We hope the situation in East Timor can restore stability at an early date and welcome President to visit China at the conveniences of both sides.

Now I'm ready to take up your questions.

Q: I have several questions on "China threat". Some people accuse China's defense budget of lack of transparency. How do you observe the view? Some observers say China's military expenditure is driving towards an unclear direction with too high speed of growth. How do you think about it? The American decision-making center advised to conduct an "integration with guarantee" with China, so as to make China become a responsible stakeholder. What comment do you have on it? Some analysts say that China is at strategic crossroads and may likely walk on a wrong direction as a military competitor of the United States. What response do you have on it?

A: Yesterday I made a clear and complete response to the so-called 2006 "Annual Report on the Military Power of China "by American Pentagon. So I will not repeat those words.

China takes a responsible and sincere attitude towards its military budget and enhancing mutual trust with all other countries in military and national defense fields. We are ready to strengthen exchanges and communication with all other countries including the US to constantly enhance mutual trust. We have clearly released our budget for national defense and will act in the budget in accordance with law. Some people say China's budget is not accurate. I don't know what proof they have. Do we still have reasons to question whether those countries suspicious of China's transparency in military expenditure are not transparent either? On this issue there is no reason to make irresponsible remarks against China with colored glasses and cold-war mentality and rely on deep-rooted bias to impose a cap of military opacity on China without any solid proof.

The American side call China and the US are stake-holders, which have certain reasons. But in our view, China-US relations are more than constructive partners. President Hu Jintao fully elaborated on this view during his visit to the US. China and US have broad common strategic interests in bilateral fields and many international issues. The two sides reached a consensus of certain degree on it as an important fruit for President Hu Jintao's visit to US. The two sides will continue to make joint efforts to follow up the consensus and promote constructive and cooperative relations between China and the US.

American Pentagon's report said China's development is at crossroads. It is an inaccurate judgment. There is no so-called crossroads for China's road for development. There is but one way-the road of peaceful development which China firmly pursues. China develops itself through safeguarding world peace and in return promotes world peace through its own development. China hopes relevant sides can have a clear understanding of China's road for development. China is dedicated to building a harmonious world and hoping both sides to increasingly enhance mutual trust through exchanges and dialogues.

Q: On May 23rd, Belarusian President Lukashenko told at the parliament that China takes a primary position in Belarusian foreign policy. What comment do you have on it?

A: China and Belarus are friendly countries. Over the 14 years since the establisment of diplomatic relations, the two sides have a smooth development in their bilateral relations and have achieved remarkable progress in cooperation over all fields. China respects Belarus' choice for its own development road and internal and foreign policies according to its own national conditions. We are ready to further consolidate and develop China's relations with Belarus on the basis of five principles of peaceful coexistence.

Q: A German diplomat said that China is the biggest obstacle in resolving the Iranian nuclear issue, for China always hopes to use "carrot" but "stick" while discussing to resolve the issue with "carrot and stick" policy. Today a Hong Kong media reported that last week two Vatican representatives visited China. Can you tell us what issues the two sides discussed?

A: For you first question, since I haven't read the specific remark of the German official, I'm not clear whether his position formally represents the position of German Government. The Chinese side can't accept such criticisms. China firmly safeguards the international system of nuclear non-proliferation. China's attitude is sincere, serious and firm. China has no selfish interests on the Iranian nuclear issue. Proper solution to the Iranian nuclear issue through peaceful dialogues and finding a way acceptable to Iran, the Tri-EU, the US and other relevant sides are in the best common interests of all sides. Now relevant countries are making active efforts for it. Such remarks of this official at this moment are irresponsible and inimical to the solution of Iranian nuclear issue.

For your second question, I haven't heard of any news in this respect. China and Vatican maintains a smooth channel for their contacts. The Chinese Government is always sincere in improving China-Vatican relations. We still adhere to the two principles all people know.

Q: Just now you announced that Foreign Minister of Ecuador will visit China. What Chinese leaders will he meet? Will he visit other cities? Ecuador's official said that the main objective of this visit is tourism. What position does the Chinese side have on it?

A: During Foreign Minister of Ecuador's visit to China, Vice President Zeng Qinghong will meet with him, Foreign Minister Li Zhaoxing will hold a talk with him. The two sides will exchange in-depth views over bilateral relations. He will visit no other places than Beijing.

Over the 26 years since the establisment of diplomatic relations, China and Ecuador have smooth development in their relations. In recent years, the two sides have more exchanges of people, enhance mutual political trust and expand economic and trade cooperation. Last year, bilateral trade volume topped US$510 million with an increase of 17.04% than the same period the year before. Both sides have achieved positive progress in cooperation of energy, telecommunication and other new fields. In international affairs, the two countries support each other and have good cooperation. As for whether the cooperation in tourism and other fields will be touched upon, I haven't got information at hands. But I believe China is positive in conducting cooperation with Ecuador in all fields. Relevant departments of both sides will also make in-depth exploration over cooperation in specific fields.

Q: Has US Deputy Secretary of State Hill met with Vice Foreign Minister Wu Dawei? What issues have the two sides discussed? Do you expect his visit to help promote the progress of Six-Party Talks?

A: During US Deputy Secretary of State Hill's visit to China, Vice Foreign Minister Yang Jiechi met with him. The two sides exchanged views over issues of common interest, particularly over how to follow up consensus reached between the two heads of state during President Hu Jintao's visit to the US. The two sides are determined to enhance cooperation and jointly implement these consensuses.

Deputy Secretary of State Hill's meeting with Vice Foreign Minister Wu Dawei began at 10:15 this morning and lasted till 2:15 this afternoon. The two sides talked for full four hours. The two sides exchange an in-depth and complete views over issues of common interest , especially over the nuclear issue on the Korean Peninsula. The two sides agreed that the joint statement reached at the fourth round of Six-Party Talks last year should be implemented completely. All sides should make common efforts for an early resumption of Six-Party Talks. The two also agreed that creating a lasting peace mechanism in Northeast Asia and realizing a nuclear-free Korean Peninsula conform to the interests of all sides.

The Chinese side always supports to resolve the nuclear issue peacefully on the Peninsula through dialogues. The position remains unchanged. Over the past period, the Chinese side has been making active efforts and actively exploring with relevant side on breaking the impasse in the process of Six-Party Talks and promoting the resumption of Talks. China's efforts on the Talks proceed from the overall interests of safeguarding peace, stability and development on the Korean Peninsula, particularly maintaining lasting peace and stability of Peninsula. We have noticed that some media accuse China of lack of due role in the nuclear issue on the Korean Peninsula. We can't accept or agree with such statements. The Chinese side has no intention to fish our own interests with the nuclear issue on the Peninsula. Based upon such a position, we will continue to work with other sides for an early resumption and substantive progress of Six-Party Talks. In this process, we hope relevant sides, particularly main parties concerned can actively coordinate with us.

Q: It's reported that Vatican will ordinate a bishop in Shannxi, China. What's your comment? It's reported that Cardinal Joseph Zen will go to Vatican to discuss the establishment of diplomatic relations between the two countries. What's your comment? How do you view Joseph Zen?

A: I have not heard of the specific information. We have urged Vatican to respect the religious policy and relevant regulations of China, and stop interfering in China's internal affairs.

The contact channel between the two countries is open. I have no intention to comment on some person.

Q: How will Lai Changxing be repatriated to China?

A: Lai's repatriation is in the charge of relevant Chinese departments. Lai Changxing is the prime suspect of the Xiamen smuggling case. We have contacted and made representation to Canada for many times. He should be repatriated to China and face a fair trial of Chinese laws.

Q: What comment do you have on the meeting at Qatar between foreign ministers of China and Japan?

A: Relevant media have made a full coverage of this meeting between foreign ministers of China and Japan and reported the important positions of the two foreign ministers, which I will not repeat here. I want to stress that, Foreign Minister Li Zhaoxing specially elaborated on China's position on Japanese leaders' homage to the Yasukuni Shrine which worships Class-A criminals of WWII. He pointed out that Japanese leader's homage to the Yasukuni Shrine constitutes a major obstacle in improvement and development of China-Japan relations and undermines political foundation of bilateral relations, which is an important and actual subject to be resolved by the two countries. In improvement and development of China-Japan relations, Yasukuni Shrine is an issue that can't be bypassed or evaded. The two sides also exchanged views over cooperation in other important fields and reached important consensus over enhancing strategic dialogues, economic and trade cooperation, exchanges of people and other fields. The two sides agreed to make joint efforts, enhance strategic dialogues and remove obstacles, so as to promote the improvement and development of China-Japan relations.

If there are no other questions, thanks for your presence today! See you!